Given the following information on a MPT, what is the servicing fee in year 3? (Round your answer to the nearest dollar)

(Note: You can perform this calculation with the spreadsheet or by completing it iteratively. You know enough to do this calculation now, but we will go over a specific example in class Monday, if you'd prefer to wait to work through a problem together.)

10 year FRM, fully amortizing, annual payments.

No prepayment or default

100 loans in the pool

Average starting balance of $350,000/loan

Coupon rate 5% (Mortgage rate 5%)

Servicing fee of 0.5% of starting outstanding pool balance